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What is the cash flow from operations for a firm with $1 million profit before tax, $250,000 depreciation expe?
What is the cash flow from operations for a firm with $1 million profit before tax, $250,000 depreciation expense, and a 40% marginal tax rate?
I got 1,000,000-250,000-(.4*250,000)
It is wrong and I am stuck, any help would be appreciated.
1 Answer
- smahadevan39Lv 78 years ago
Depreciation is not included for cash flow. There is no cash inflow or out flow
in Depreciation. Ignore depreciation while preparing cash flow statement.
So net Cash inflow is $ 750,000
